This Court has original subject matter jurisdiction over this copyrightinfringement action pursuant to 28 U.S.C. § 1331 and 28 U.S.C. § 1338(a).9.

Righthaven is the owner of the copyright in the literary work entitled:

“

Telecomgroups run out of cash

”

(the

“Work”), attached hereto as Exhibit

2.10.

At all times relevant to this lawsuit, the Work has depicted and depicts theoriginal source publication as the Las Vegas

Review-Journal

.11.

The Defendants willfully copied, on an unauthorized basis, the Work from asource emanating from Nevada.

Case 2:10-cv-01281 Document 1 Filed 07/29/10 Page 2 of 7

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12.

On or about June 16, 2010, the Defendants displayed, and continue to display, anunauthorized reproduction of the Work

(the “

Infringement

”), attached hereto as Exhibit

3, on theWebsite.13.

The subject matter, at least in part, of the Work and the Infringement, is thebankruptcy filings of four Nevada-based telecommunications companies.14.

At all times relevant to this lawsuit, the Defendants knew that the Work wasoriginally published in the Las Vegas

Review-Journal

.15.

At all times relevant to this lawsuit, the Defendants knew that the Infringementwas and is of specific interest to Nevada residents.16.

The Defendants’ display of the Infringement was and is purposefully directed at

Nevada residents.17.

The Defendants knew, or reasonably should have known, that websites, such asthe Website, are and were at all times relevant to this lawsuit, the habitual subject of postings byothers of copyright-infringing content.18.

At all times relevant to this lawsuit, the Defendants did not institute any proactivepolicy of precluding or attempting to preclude the posting by others of copyright-infringingcontent on the Website.19.

At all times relevant to this lawsuit, the Defendants did not institute any proactivepolicy of monitoring or attempting to monitor the posting by others of copyright-infringingcontent on the Website.20.

At all times relevant to this lawsuit, the Defendants did not institute any proactivepolicy of deleting or attempting to delete the posting by others of copyright-infringing content onthe Website.21.

At all times relevant to this lawsuit, the Defendants’ failure to institute any

proactive policies intended to address the posting by others of copyright-infringing content onthe Website constituted and constitutes the Defenda